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Reliance Jio, India’s leading telecom operator, has claimed the top spot as the world’s largest consumer of mobile data traffic.
- Jio Surpasses China Mobile: Jio processed a staggering 40.9 exabytes of data in the first quarter of 2024, exceeding China Mobile’s 38 exabytes.
- Strong 5G Subscriber Base: Jio boasts the world’s second-largest 5G subscriber base with over 108 million users, with 28% of its data traffic coming from 5G users.
JioBharat Fuels Growth, But ARPU a Concern
Jio’s aggressive subscriber growth strategy, driven by affordable JioBharat plans and unlimited 5G offers, has resulted in high data consumption but impacted its average revenue per user (ARPU). Analysts expect this trend to reverse after anticipated tariff hikes following India’s general elections.
Jio’s Monetization Challenge
Despite impressive data traffic statistics, Jio is yet to effectively monetize its 5G services. Analysts attribute this to the influx of low-cost JioBharat users and unlimited data plans, leading to stagnant ARPU. Investment firms highlight that Jio’s free 5G plans contribute to 30% of network usage but discourage 4G data top-ups, pushing users towards cheaper plans.
World’s Largest Mobile Data Consumer Sees Analysts Predicting Future ARPU Growth
Jio ended FY24 with 482 million subscribers consuming an average of 28.7 GB of data monthly. However, ARPU remained at Rs 182. Competitor Bharti Airtel, with a lower data usage average and slower subscriber growth. Witnessed a rise in ARPU due to its existing user base.
Reliance Jio, the world’s largest mobile data consumer, has become the world’s largest mobile operator in data traffic consumption, surpassing China Mobile. Analysts predict tariff hikes across the industry in FY25 and FY26, which are expected to improve Jio’s ARPU. Jio’s market leadership, strong 5G network, and strategic partnerships are seen as positive indicators for future revenue growth.
